Impact of Public Capital Expenditure on Poverty Rate in Nigeria


  • Jideofor Nnennaya Joy Department of Accounting, Michael Okpara University of Agriculture, Umudike, Nigeria
  • Michah Chukwuemeka Okafor Department of Accounting, Michael Okpara University of Agriculture, Umudike, Nigeria
  • Ikhite Hope Ohiorenuan Department of Banking and Finance, Michael Okpara University of Agriculture, Umudike, Nigeria



Government Expenditure, Poverty Rate, Economy Growth, Central Bank of Nigeria, Capital Expenditure


According to the researchers, the aim of this study is to evaluate the impact of government spending on poverty rates in Nigeria. Several issues of the Central Bank of Nigeria's statistics bulletin were used in the research, which yielded a large amount of data. The data was submitted to a unit root test, which was performed using the Augmented Dickey fuller (ADF) method, in order to determine its time series characteristics. The variables' socioeconomic characteristics were obtained via the use of descriptive statistics. Because of the varying order of integration seen in the unit root, cointegration and regression analysis were carried out utilizing the ARDL- Autoregressive Distributed Lag method, which is an acronym for Autoregressive Distributed Lag. The results of the study revealed that the crucial t-value of 2.185498 is more than the t-statistic value of 2.185498 by a factor of two (2.0). Additionally, the result of 0.0377 is less than the cutoff value of 0.05. According to the findings of the research, capital expenditure has a significant impact on the poverty rate. According to the study, more capital investment in the following areas is recommended: education, electricity generation, economic services, and health. It also recommends that resources be effectively managed.


Download data is not yet available.


Asghar, N., Hussain, Z., &Rehman, H.U. (2012). The impact of government spending on poverty Reduction: Evidence from Pakistan 1972 to 2008. African Journal of Business Management, 6(3), 845-853.

Atiku, A. (2018). In 2018, Nigeria became world headquarters for extreme poverty-Atiku. PM News. Retrieved March 27, 2019, from

Dahmardeh, N., & Tabar, M.H. (2013). Government expenditures and its impact on poverty Reduction (Empirical from Sistan and Baluchestan Province of Iran). International Journal of Academic Research in Economics and Management Sciences, 2(1), 251-260.

Ezirim, C.B (2006). Explaining the size of Public expenditure in less developed countries. Theory and Empirical Evidence from Nigeria. Nigerian Journal of Banking and Finance UNEC (6)

Heltberg, R., K. Simler and F. Tarp. 2003. "Public Spending and Poverty in Mozambique". FCND Discussion Paper No. 167. Food Consumption and Nutrition Division, International Food Policy Research Institute, Washington, D.C.

Ogboru, I., Abdulmalik, F.A., & Park, I.O. (2018). Government expenditure on agriculture and its Impact on unemployment reduction in Nigeria: 1999-2015. International Journal of Economics, Commerce and Management, 6(3), 1-25.

Okafor, M.C. (2015). Effect of federal government expenditure on social sector outcomes in Nigeria, unpublished Thesis. Institute for development studies, University of Nigeria, Enugu Campus.

Sahn, D.E., S.D. Younger and K.R. Simler. 2000. "Dominance testing of transfers in Romania". Review of Income and Wealth, 46(3): 309-27.

Shenggen Fan, P. Hazell and S. Thorat 1999. “Linkages between government spending, growth, and poverty in rural India”. IFPRI Research Report No. 110.

Taiwo, M. (2012). Government expenditure and economic development: empirical evidence from Nigeria. European journal of business and management 3(9)

Undesa. (2015). The millennium development goals report 2015. New York: United Nations. Retrieved March 28, 2019, from

Wilhelm, V., & Fiestas, I. (2005). Exploring the link between public spending and poverty Reduction: Lessons from the 90s. Working Papers. World Bank Institute Washington, D.C.




How to Cite

Joy, J. N., Okafor, M. C. ., & Ohiorenuan, I. H. . (2021). Impact of Public Capital Expenditure on Poverty Rate in Nigeria. International Journal Papier Public Review, 2(4), 46-55.